Everything you need to know about Swoop and other ultra low-cost carriers in Canada

Canada is welcoming new ultra low-cost carriers to its aviation market. So what does that mean for travellers? We break it down for you

Complaining about the cost of air travel is a time-honoured tradition in this country. But that may be about to change as Canada welcomes new ultra low-cost carriers (ULCC) to its aviation market. Low-cost carrier Flair Airlines Ltd. is already operating in Canada, and on Wednesday, June 20, WestJet Airlines Ltd.’s ULCC Swoop will launch its maiden flight.

So what will that mean for Canadian passengers? Here’s everything you need to know about Swoop and ULCCs in Canada.

What is Swoop?

Swoop is a no-frills airline within an airline that will offer unbundled, low base fares while also charging fees for a wide range of extras, such as seat selection, carry-on bags and food and drink. Think of it as Canada’s version of Allegiant Air, Spirit Airlines and Southwest Airlines in the United States, or Ryanair and easyJet in Europe.

A Swoop Airlines Boeing 737 on display during their media event, Tuesday, June 19, 2018 at John C. Munro International Airport in Hamilton, Ont.Tara Walton/The Canadian Press

The airline also plans on eventually flying south to the U.S. and Caribbean. It has applied to the U.S. Department of Transportation for traffic rights to destination in the southern states, and Swoop president Steven Greenway said he hopes to begin offering fares for sun destinations by October or November.

The airline is also expected to release its winter schedule at some point in July, which will include an optimized domestic schedule.

How much is it going to cost me?

Introductory base fares are as low as $39.00 for a one-way ticket (from Abbotsford to Edmonton), while other fares begin at $99 and up, depending on when you book.

But remember, those base fares don’t include the extra fees that often come standard with tickets on other airlines.

The cabin of a Swoop Airlines Boeing 737 on display during a media event, Tuesday, June 19, 2018 at John C. Munro International Airport in Hamilton, Ont.Tara Walton/The Canadian Press

For example, passengers will be limited to one personal item that must fit under the seat, which means you’ll have to pay if you want to bring carry-on luggage. That will cost you from between $36.75 and $92.00, depending on when you pay for it (it will cost you less if you pay online ahead of time, more at the airport counter, and even more at the gate, so plan ahead.) Checked bag fees start at $26.25, seat selection ranges from $5 to $30, and if you want priority boarding, that will cost you from between $10.50 and $21.00.

What are the planes like?

Swoop will operate a fleet of Boeing 737-800 jets that have been outfitted with 189 seats.

How did Swoop come about?

In April 2017, WestJet announced plans to launch a new ULCC in Canada that it said would be a distinct brand from its mainline carrier. The move came several months after the federal government offered foreign ownership exemptions for two aspiring carriers — Canada Jetlines Ltd. and Enerjet — that hoped to launch Canada’s first ULCC. The decision by WestJet to launch its own ULCC was seen as a response to these aspiring airlines, and a way to maintain its foothold in the lower-cost end of the market.

Why did it take so long to bring ULCC’s to Canada?

There are many reasons why Canada was the last G7 country to be home to a ULCC. As Raymond James analyst Ben Cherniavsky said in a report analyzing the ULCC space in Canada, “It’s easy to start an airline that lowers fares, stimulates demand and fills planes. What’s hard to do is this, while also making good money.”

The cabin of a Swoop Airlines Boeing 737.Tara Walton/The Canadian Press

One of the biggest and obvious challenges is Canada’s sparse population that is spread over a massive geography. Taxes and fees are also higher in Canada than in other countries where ULCCs are in operation. For example, according to Cherniavsky’s analysis, the average cost-per-enplanement (CPE) at Canadian airports comes in at $40.99, which is 50 per cent more than the average for the 10 most expensive airports in the U.S. and about nine times more than the average for the 10 least most expensive U.S. airports. And unlike in the U.S. and Europe, where many cities have multiple airports, Canada has a limited supply of secondary and tertiary airports that tend to have cheaper fees. These factors apply to all airlines in Canada, but they can make it especially challenging for ULCCs, which need to keep operating costs as low as possible in order to offer low fares.

Comments

We encourage all readers to share their views on our articles and blog posts. We are committed to maintaining a lively but civil forum for discussion, so we ask you to avoid personal attacks, and please keep your comments relevant and respectful. If you encounter a comment that is abusive, click the "X" in the upper right corner of the comment box to report spam or abuse. We are using Facebook commenting. Visit our FAQ page for more information.